ABSTRACT
This chapter focuses on the two concepts: integration and reconciliation. The two separate sets of accounts: cost and financial accounts, whilst seeking to reconcile the results shown by each by making adjustments to the profit recorded in the cost accounts to correct any omissions of expense, over or under-recoveries of overheads, or any difference due to the valuation of stocks. Reconciliation as a means of relating the dual accounting technique fulfilled the requirements of arithmetical relationship of the cost accounts with the financial accounts. Unification of the two accountancy techniques to the exclusion of the nominal accounts for individual expenses, and the retention of the accounts for assets, liabilities, personal accounts, cash accounts, and the former 'cost' accounts. Integration offers accounts that reflect what is physically happening in the factory. The advantages of integration are: related accounts, saving of clerical labour, saving of expense, speed, omissions of expenses, mechanisation.
